Adams Company's cost and production data for two recent months included the following: April 1,000 $2,000 $667 March Production (units) 900 $2,000 $ 600 Rent Utilities Required a. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. b. Identify which cost is variable and which is fixed.
Adams Company's cost and production data for two recent months included the following: April 1,000 $2,000 $667 March Production (units) 900 $2,000 $ 600 Rent Utilities Required a. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. b. Identify which cost is variable and which is fixed.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Transcribed Image Text:Adams Company's cost and production data for two recent months included the following:
March
April
1,000
$2,000
$ 667
Production (units)
900
$2,000
$ 600
Rent
Utilities
Skipped
Required
a. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April.
b. Identify which cost is variable and which is fixed.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. (Round your answers to 2
decimal places.)
March
April
Rent cost per unit
Utility cost per unit
Transcribed Image Text:Adams Company's cost and production data for two recent months included the following:
April
1,000
$2,000
$4
March
Production (units)
900
$2,000
$ 600
Rent
Utilities
667
Skipped
Required
a. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April.
b. Identify which cost is variable and which is fixed.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Identify which cost is variable and which is fixed.
Rent cost
Utility cost
<Required A
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